Almost any business that sells goods or taxable services within the State of Texas to customers located in Texas is required to report and / or collect sales tax from that buyer.
Registering for Texas Sales Tax / Reseller’s Permit is a must for all businesses reporting any taxable sales, even if the sales are zero dollars in revenue ( please consult with your accountant / tax advisor for further information ) .
In most cases, this will include all online businesses such as online sellers who sell through a website, or on Amazon, eBay, etc.
Any seller which conducts business and has a major presence within the state must collect sales tax in Texas must pay taxes to the state.
Therefore, these sellers required to file for a Texas Sales Tax Certificate.
By not doing so, business may face sanctions or other types of penalties.
Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Please note each business is unique and may have different requirements.
As a wholesale company conducting business in the state of Texas, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
While you may not collect sales taxes from your out of state customers, you are still required to collect their information and report it to Texas State.
If you sell tangible goods in Texas that are taxable than you would charge sales tax on shipping and handling charges.
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third party shipper. In most instances, drop shipments in Texas are required to have sales tax added
Leases on motor vehicles, safety apparel, certain medical goods and equipment, groceries, raw materials and machinery, newspapers, and general pollution control equipment are tax exempt
You may need a Sales Tax Certificate if any of the following apply your business:
Application for sales tax exempt Texas
Texas Sales Tax Permit application
Texas Sales tax Registration application